Thursday, January 12, 2012

San Diego - Real Pension Cost To City Is 11.66% - Cheapskates!

The City of San Diego is crying about its contribution rate for its pension system - 42.68%. A close examination of the 2010 actuarial study shows that the real cost to the city is 11.66% - less than what the employees pay. To get to the 42.68% number, 16.84% to cover under-funding prior to 2007 and 14.18% for the mark-to-market and smoothing nonsense must be added.

The bottom line is that the city did not make all of its required contributions prior to 2007 and are now paying the piper for that and the mark-to-market smoothing crap since 2006.

Pay me now or pay me later. The city chose later. Later has arrived. Look at the fact sheet below.